If a monopolist is producing a level of output where MR exceeds MC,then it should
A)Raise its price.
B)Increase its output.
C)Lower its output.
D)Shift its marginal cost curve upward.

Question

Quizplus · Accepted Answer

If MR exceeds MC, the monopolist should increase its output to increase its profits. The additional units produced will have a marginal cost less than the marginal revenue, resulting in increased profit. Therefore, increasing output is the best choice in this situation.

If a Monopolist Is Producing a Level of Output Where